Asian stocks cheer China data dump
- Encouraging top-tier statistics from China please Asian share buyers amid active run-up based on easy money expectations.
- US manufacturing index, trade/political headlines and Fedspeak to keep directing near-term market moves.
With China’s headline data offering an additional reason to smile for the Asian equity traders, MSCI’s index of Asia Pacific shares outside Japan gains around 0.35% ahead of the European open on Monday.
June month Retail Sales and Industrial Production growth of 9.8% and 6.3% respectively cleared 8.3% and 5.2% forecasts whereas Gross Domestic Product (GDP) figures for the second quarter (Q2) of 2019 also grew beyond 1.5% expectations to 1.6% on a QoQ basis while matching 6.2% yearly estimations.
Stock traders were previously cheering dovish statements from headline global central banks that favored easy money expectations.
Risk tone remains light as the US 10-year bond yields rise close to month’s high while taking the rounds to 2.124%.
Among the national equity indices, Australia’s ASX 200 dropped -0.41% as traders anticipate less easing after the strong data from the largest customer China. Further, Hong Kong’s Heng Sang gains 0.22% whereas India’s BSE Sensex adds near 0.30% by the press time. It should be noted that Japanese markets are off due to the Marine Day holiday.
At the trade front, the US is likely lifting its ban of sells to China’s Huawei, as per Reuters, whereas China is also taking steps to fasten the trade negotiations.
Moving on, the US June month NY Empire State Manufacturing index is likely an immediate catalyst to watch for fresh impulse amid the trade/political headlines.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
